Expion360 Inc., maker of lithium-ion battery power storage solutions, today issued a letter to its stockholders from CEO Brian Schaffner. Read the letter below:
Dear Stockholders,
2023 was a year of diversification and expansion for Expion360, underscored by exciting new products, market categories and technology innovation. Sales for our product offerings were driven by expanded distribution partnerships and OEM market penetration. Throughout the year, our focus was on developing new products, including our new home energy storage systems (ESS), which launched in late 2023, and several new products we plan to launch in 2024. We have evolved to capture a leading position in the premium lithium iron phosphate (LiFePO4) batteries and accessories market by offering products for RVs, marine applications, light electric vehicles (LEV) and residential and commercial energy storage systems.
New partnerships, agreements with OEM strategic suppliers and expanded sales and distribution partnerships further broadened our market opportunities in new and existing verticals last year. During 2023, we became a strategic supplier of high-energy lithium-ion batteries and power system components for Cube Series’ new ultra-lightweight, hard-sided foldable camper, designed for light duty trucks. In addition, Chinook RV, a top name in the RV industry and a recognized leader in quality and innovation, chose us as a strategic supplier of lithium-ion batteries for its off-grid power systems. Our sales and distribution partnership with Meyer Distributing, a leading national marketer and distributor of automotive and RV specialty products, was expanded to now include more than 90 warehousing facilities across the U.S. and Canada that service thousands of customers and hundreds of dealers. As we begin 2024, Expion360 lithium-ion batteries are available through more than 300 dealers, wholesalers, private-label customers and OEMs nationwide.
Throughout the year, we garnered interest in our LiFePO4 battery lineup at some of the largest conferences and events in North America, introducing thousands of attendees to the benefits of our products and accessories. At the RV Dealer Open House in Elkhart, Indiana, the world’s largest RV dealer show, demonstrations of our E360 batteries were given at a number of OEM customer booths, including Chinook RV and Imperial Outdoors. Our products were also featured on the award-winning automotive television program, Motorhead Garage, which was broadcast across the U.S. and Canada.
We made operational improvements to support our continued growth, including the expansion of our sales team with the hiring of two additional sales representatives, including a dedicated sales representative for the new LEV vertical. In addition, we strengthened our corporate governance with the appointment of tech industry veteran, innovator and business leader, Tien Q. Nguyen, to our board of directors, who brings more than 30 years of entrepreneurial and senior-level experience driving innovation in electrical technology, including product financing, engineering, development and commercialization.
In December 2023, we received financing commitments of up to $22.5 million through a senior unsecured convertible promissory note in an original principal amount of $2.75 million to 3i, LP, and an equity line of credit with Tumim Stone Capital, under which we will have the right, but not the obligation, to issue and sell to Tumim up to $20 million in shares of common stock from time to time. These financings provide additional operating liquidity and financial flexibility which includes IP and product development, and our newly launched home energy storage systems. During the year, we were also privileged to join the Russell Microcap Index, widely used by investment managers and institutional investors for index funds and as a benchmark for active investment strategies.
As we look ahead, we believe we are well-positioned for another exceptional year. Although we anticipate the current lower rate of sales in the broader RV market to continue in the short term, we expect to continue capturing market share in this segment. While we expect to report a year-over-year mid-teens percentage decline in 2023 revenue, our goal is to recapture growth through multiple initiatives and new products as the RV segment recovers. We increased R&D activity to focus on innovation and expansion of our product line. We will continue to work towards additional OEM market penetration with new major partners, as well as growing demand from customers looking to achieve greater power density, better reliability and superior quality for their energy storage needs. We will continue to prioritize increasing consumer sales, as demonstrated by our Shopify e-commerce sales that increased 300% in 2023 over the prior year, and our busy schedule of trade shows that we plan to attend throughout the year.
In addition, we are highly focused on expanding into other verticals and channels, such as marine, overland and light electric vehicles, and introducing products for home energy and commercial applications. We expect golf cart battery sales to continue to progress with upward momentum as more installers test and begin using our newly introduced 48v GC2 battery design. We anticipate strong growth from the launch of our energy storage systems and partnership with REPM and other similar solar companies, based on these new initiatives and our growing pipeline, and expect to see an acceleration of our sales from new and existing product lines commencing in the first half of 2024 as our product innovations, partnerships and sales gain more traction.
Lastly, we began the year by engaging with international investor relations specialists MZ Group (MZ) to lead a comprehensive strategic investor relations and financial communications program across all key markets to proactively communicate our technological advancements and growing customer base, including new major OEM partners and consumer sales, that are positioning Expion360 to be a global leader in lithium-ion energy storage solutions across multiple verticals.
Thank you to our stockholders, partners and team for their support on our journey. We look forward to providing future updates on our business and hope you will join our fourth quarter and full year 2023 financial results conference call that we plan to host in March 2024.